High attrition rate cause of worry for IT co

Mumbai, Sep 9: Leading IT companies are a worrisome lot these days as high attrition rate slowly but gradually is eating into their revenue.

India's two biggest IT players, TCS and Infosys Technologies currently spend about 4 per cent of their total revenues on training. Infosys said the company has spent 5,000 US Dollars per fresher in FY-07, while Wipro spends 2 per cent of its revenue on training.

Hema Ravichandar of Infosys termed this as a ''cyclical phenomenon''.

''Traditionally, Q1 and Q2 are periods when people leave for higher studies, so these are also times when attrition is slightly higher than the rest of the quarters,'' she added.

A recent study on the attrition level of the company found that the maximum attrition took place among the employees who are in age group of 26 to 30 years. It found that the segment of employees who are most vulnerable to change, are those whose experience ranges between 2 and 4 years.

The most stable chunk of employees was found to be in the age group of 39 to 45 as they find themselves to be unsettled in their jobs and companies that they have been associated.

Attrition trend also revealed that women employees were less prone to frequent job changes than their male counterparts. For every 10 males jumping the fence by changing the job, there were only 2 females crossing over.

The immediate gains in salary package was found to be also responsible for job change in almost all the sectors. However the growth potential remains an important reason, prompting the employee movement.

The recruitment has now become an ongoing process throughout the year. The average increase in salaries offered by the companies with new placement range between 25 to 30 per cent depending upon the salary structure and individual strengths.

UNI